FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of April 2011
Commission File Number 2 - 68279
RICOH COMPANY, LTD.
-----------------------------------------------
(Translation of Registrant's name into English)
13-1, Ginza 8-Chome, Chuo-ku, Tokyo 104-8222, Japan
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(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.)
Form 20-F X Form 40-F __
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): __ )
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): __ )
(Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of 1934.)
Yes __ No X
(If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82-__ )
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Ricoh Company, Ltd.
------------------------------
(Registrant)
By: /S/ Zenji Miura
------------------------------
Zenji Miura
Chief Financial Officer,
Deputy President and
Representative Director
April 27, 2011
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RICOH April 27, 2011
FLASH REPORT
Year ended March 31, 2011
(Results for the Period from April 1, 2010 to March 31, 2011)
Three months ended March 31, 2011
(Results for the Period from January 1, 2011 to March 31, 2011)
PERFORMANCE OUTLINE (CONSOLIDATED)
(1) Year ended March 31, 2010, 2011 and Year ending March 31, 2012 (Forecast)
(Billions of yen)
------------------------------------------------------------------------------------------------------- ----------------------
Year ended Year ended Year ending
March 31, 2010 March 31, 2011 March 31, 2012
(Results) (Results) Change (Forecast) Change
------------------------------------------------------------------------------------------------------- ----------------------
Domestic sales 876.5 875.8 -0.1% 900.0 2.8%
Overseas sales 1,139.7 1,066.1 -6.5% 1,190.0 11.6%
Net sales 2,016.3 1,942.0 -3.7% 2,090.0 7.6%
Gross profit 822.3 790.0 -3.9% 853.0 8.0%
Operating income 65.9 60.1 -8.8% 70.0 16.3%
Income before income taxes 57.5 45.4 -21.1% 63.0 38.8%
Net income attributable to Ricoh Company, Ltd. 27.8 19.6 -29.5% 29.0 47.6%
------------------------------------------------------------------------------------------------------- ----------------------
Exchange rate (Yen/US$) 92.91 85.77 -7.14 85.00 -0.77
Exchange rate (Yen/EURO) 131.21 113.28 -17.93 120.00 6.72
------------------------------------------------------------------------------------------------------- ----------------------
Net income attributable to Ricoh Company, Ltd.
shareholders per share-basic (yen) 38.41 27.08 -11.33 39.97 12.89
Net income attributable to Ricoh Company, Ltd.
shareholders per share-diluted (yen) 37.36 26.53 -10.83 39.93 13.40
------------------------------------------------------------------------------------------------------- ----------------------
Return on equity attributable to Ricoh Company, Ltd. (%) 2.9 2.1 -0.8 -- --
Income before income taxes on total assets (%) 2.3 2.0 -0.3 -- --
Operating income on net sales (%) 3.3 3.1 -0.2 3.3 0.2
------------------------------------------------------------------------------------------------------- ----------------------
Total assets 2,383.9 2,262.3 -121.5 -- --
Ricoh Company, Ltd. shareholders' equity 973.3 929.8 -43.4 -- --
Interest-bearing debt 684.4 630.4 -54.0 -- --
------------------------------------------------------------------------------------------------------- ----------------------
Ricoh Company, Ltd. shareholders' equity ratio (%) 40.8 41.1 0.3 -- --
------------------------------------------------------------------------------------------------------- ----------------------
Ricoh Company, Ltd. shareholders' equity per share (yen) 1,341.45 1,281.70 -59.75 -- --
------------------------------------------------------------------------------------------------------- ----------------------
Cash flows from operating activities 190.7 130.0 -60.6 -- --
Cash flows from investing activities -89.5 -92.0 -2.4 -- --
Cash flows from financing activities -113.3 -92.1 21.2 -- --
Cash and cash equivalents at end of period 242.1 179.1 -62.9 -- --
------------------------------------------------------------------------------------------------------- ----------------------
Capital expenditures 66.9 66.9 -- 67.0 0.0
Depreciation for tangible fixed assets 70.3 67.2 -3.0 67.0 -0.2
R&D expenditures 109.8 110.8 0.9 120.0 9.1
------------------------------------------------------------------------------------------------------- ----------------------
Number of employees (Japan) (thousand people) 41.1 40.1 -1.0 -- --
Number of employees (Overseas) (thousand people) 67.4 68.9 1.5 -- --
------------------------------------------------------------------------------------------------------- ----------------------
RICOH COMPANY, LTD.
* Ricoh bases the forecast estimates for March 31, 2012 above upon information
currently available to management, which involves risks and uncertainties
that could cause actual results to differ materially from those projected.
1
(2) Three months ended March 31, 2010 and 2011
(Billions of yen)
---------------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2010 March 31, 2011 Change
---------------------------------------------------------------------------------------------------------------------------------
Domestic sales 250.0 226.4 -9.4%
Overseas sales 291.5 276.5 -5.2%
Net sales 541.6 502.9 -7.1%
Gross profit 213.9 190.5 -10.9%
Operating income 28.2 6.2 -78.0%
Income before income taxes 26.7 4.0 -84.8%
Net income attributable to Ricoh Company, Ltd. 13.4 -0.6 --
---------------------------------------------------------------------------------------------------------------------------------
Exchange rate (Yen/US$) 90.76 82.32 -8.44
Exchange rate (Yen/EURO) 125.64 112.51 -13.13
---------------------------------------------------------------------------------------------------------------------------------
Net income attributable to Ricoh Company, Ltd. shareholders per share-basic (yen) 18.54 -0.95 -19.49
Net income attributable to Ricoh Company, Ltd. shareholders per share-diluted (yen) 18.04 -0.95 -18.99
---------------------------------------------------------------------------------------------------------------------------------
Return on equity attributable to Ricoh Company, Ltd. (%) 1.4 -0.1 -1.5
Income before income taxes on total assets (%) 1.1 0.2 -0.9
Operating income on net sales (%) 5.2 1.2 -4.0
---------------------------------------------------------------------------------------------------------------------------------
Capital expenditures 18.6 18.3 -0.3
Depreciation for tangible fixed assets 18.4 17.0 -1.3
R&D expenditures 27.9 29.5 1.5
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2
RICOH COMPANY, LTD. AND CONSOLIDATED SUBSIDIARIES
FLASH REPORT (CONSOLIDATED RESULTS FOR THE YEAR ENDED MARCH 31, 2011)
1. RESULTS FOR THE PERIOD FROM APRIL 1, 2010 TO MARCH 31, 2011
(1) Operating Results
(Millions of yen)
-------------------------------------------------------------------------------
Year ended Year ended
March 31, 2010 March 31, 2011
-------------------------------------------------------------------------------
Net sales 2,016,337 1,942,013
(% change from the previous corresponding
period) -3.6 -3.7
Operating income 65,997 60,196
(% change from the previous corresponding
period) -11.5 -8.8
Income before income taxes 57,524 45,400
(% change from the previous corresponding
period) 85.9 -21.1
Net income attributable to Ricoh Company, Ltd. 27,873 19,650
(% change from the previous corresponding
period) 326.8 -29.5
Net income attributable to Ricoh Company, Ltd.
shareholders per share-basic (yen) 38.41 27.08
Net income attributable to Ricoh Company, Ltd.
shareholders per share-diluted (yen) 37.36 26.53
-------------------------------------------------------------------------------
Return on equity attributable to Ricoh Company,
Ltd.(%) 2.9 2.1
Income before income taxes on total assets (%) 2.3 2.0
Operating income on net sales (%) 3.3 3.1
-------------------------------------------------------------------------------
Notes:
i. Comprehensive loss: Yen 15,660 million (-%) (Yen 23,003 million (-%) in
income in previous fiscal year)
ii. Equity in loss of affiliates: Yen 22 million (Yen 6 million in earnings in
previous fiscal year)
(2) Financial Position
(Millions of yen)
-------------------------------------------------------------------------------
March 31, 2010 March 31, 2011
-------------------------------------------------------------------------------
Total assets 2,383,943 2,262,396
Total equity 1,023,874 982,764
Ricoh Company, Ltd. shareholders' equity 973,341 929,877
Ricoh Company, Ltd. shareholders' equity
ratio (%) 40.8 41.1
Ricoh Company, Ltd. shareholders' equity
per share (yen) 1,341.45 1,281.70
-------------------------------------------------------------------------------
(3) Cash Flows
(Millions of yen)
-------------------------------------------------------------------------------
Year ended Year ended
March 31, 2010 March 31, 2011
-------------------------------------------------------------------------------
Cash flows from operating activities 190,703 130,050
Cash flows from investing activities -89,570 -92,008
Cash flows from financing activities -113,378 -92,108
Cash and cash equivalents at end of period 242,165 179,169
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2. DIVIDEND INFORMATION
(Millions of yen)
------------------------------------------------------------------------------------------
Year ended Year ended Year ending
March 31, 2010 March 31, 2011 March 31, 2012
------------------------------------------------------------------------------------------
Cash dividends, applicable to the year (yen) 33.00 33.00 33.00
Half year (yen) 16.50 16.50 16.50
Year-end (yen) 16.50 16.50 16.50
Total annual dividends (millions of yen) 23,945 23,943 --
Payout Ratio (%) 85.9 121.9 82.6
Dividends on shareholders' equity (%) 2.3 2.5 --
------------------------------------------------------------------------------------------
3. FORECAST OF OPERATING RESULTS FROM APRIL 1, 2011 TO MARCH 31, 2012
(Millions of yen)
-------------------------------------------------------------------------------
Year ending
March 31, 2012
-------------------------------------------------------------------------------
Net sales 2,090,000
Operating income 70,000
Income before income taxes 63,000
Net income attributable to Ricoh Company, Ltd. 29,000
Net income attributable to Ricoh Company, Ltd. shareholders
per share (yen) 39.97
-------------------------------------------------------------------------------
3
4. OTHERS
(1) Changes in significant subsidiaries: No
(2) Change in accounting method has been made.
(3) Number of common stock outstanding (including treasury stock):
As of March 31, 2011 744,912,078 shares As of March 31, 2010 744,912,078 shares
(4) Number of treasury stock:
As of March 31, 2011 19,409,410 shares As of March 31, 2010 19,320,723 shares
(5) Average number of common stock:
As of March 31, 2011 725,554,477 shares As of March 31, 2010 725,613,259 shares
4
1. PERFORMANCE
(1) OPERATING RESULTS
*Overview
Consolidated net sales of Ricoh Group for fiscal year 2010 (April 1, 2010 to
March 31, 2011) decreased by 3.7% from the previous corresponding period, to Yen
1,942.0 billion. During this period, the average yen exchange rates were Yen
85.77 against the U.S. dollar (up Yen 7.14) and Yen 113.28 against the euro (up
Yen 17.93). Sales would have increased by 1.9% excluding the effects of foreign
currency exchange fluctuations.
The Japanese economy had shown some moderate recovery from the second half of
the previous year. However, market conditions remained unpredictable due to the
sharp appreciation of the Yen against the U.S. dollar and the Euro as well as
the stock market decline. As a result of the Great East Japan Earthquake on
March 11, 2011, Ricoh suffered damage to its equipment, manufacturing, sales,
services and R&D sites in the affected areas. While Ricoh established a
taskforce for emergency disaster control shortly after the quake took place and
was working hard to assure full recovery, the sales and shipments of products
were delayed widely in Japan due to the shattered transport systems and the
shortage of gasoline.
Consequently, overall sales in Japan decreased by 0.1% from the previous
corresponding period.
As for the overseas economy, in the Americas, despite the recovery in individual
consumption and capital investment, market conditions remained unpredictable.
Similarly in Europe, even though the economy had shown recovery trend partially
due to the increase of European export to other regions derived from the
depreciation of the Euro, it remained uncertain due to the widening
intra-regional economic disparities derived from the financial crisis and
employment insecurity in some countries. In Africa and the Middle East, some
countries were politically-unstable due mainly to the movement for
democratization. Emerging markets such as China and India, on the other hand,
achieved strong growth. Ricoh continued to face the severe business environment
in Europe due to the appreciation of the Yen.
As for overseas sales, although sales in the Americas, due to the appreciation
of the Yen against the U.S. dollar, decreased by 6.4% (+1.5%, excluding foreign
currency exchange fluctuation) and sales in Europe, due to the sharp
appreciation of the Yen against the Euro, decreased by 9.7% (+4.2%, excluding
foreign currency exchange fluctuation), sales in Other, comprised of China,
South East Asia and Oceania, increased by 5.5% (+9.8%, excluding foreign
currency exchange fluctuation) from the previous corresponding period.
As a result, sales in the overseas market decreased by 6.5% as compared to the
previous corresponding period. Excluding effects of foreign currency
fluctuations, net sales in overseas would have increased by 3.5% as compared to
the previous corresponding period.
Gross profit, despite the increased sales of value-added high-margin products in
addition to ongoing cost reduction, decreased by 3.9% as compared to the
previous corresponding period, to Yen 790.0 billion due mainly to the
appreciation of the Yen.
Group-wide cost reduction efforts contributed largely to a decline in selling,
general and administrative expenses. Consequently, selling, general and
administrative expenses decreased by 3.5% as compared to the previous
corresponding period, to Yen 729.8 billion.
As a result, operating income decreased by 8.8% as compared to the previous
corresponding period, to Yen 60.1 billion.
For other (income) expenses, foreign exchange loss increased as compared to the
previous corresponding period. Income before income taxes decreased by 21.1% as
compared to the previous corresponding period, to Yen 45.4 billion.
As a result, net income attributable to Ricoh Company, Ltd. decreased by 29.5%
as compared to the previous corresponding period, to Yen 19.6 billion.
For Assets, cash and time deposits decreased from the end of the previous fiscal
year due to the interest-bearing debt reduction. The yen equivalent of
foreign-currency-denominated assets decreased due to appreciation of the Yen
from the previous fiscal year. As a result, total assets decreased by Yen 121.5
billion, to Yen 2,262.3 billion.
For Liabilities, decrease in the interest-bearing debt mainly in foreign
countries and redemption of bonds resulted in a decrease in total liabilities of
Yen 80.4 billion from the end of the previous fiscal year, to Yen 1,279.6
billion.
For Total Equity, the change in retained earnings resulted from payment for
dividends and net income attributable to Ricoh Company, Ltd. Accumulated other
comprehensive loss increased due mainly to the fluctuation of cumulative
translation adjustments reflecting exchange fluctuation from the end of the
previous period. As a result, Total Equity decreased by Yen 41.1 billion from
the end of the previous fiscal year, to Yen 982.7 billion.
A year-end cash dividend of Yen 16.50 per share is proposed. Combined with the
interim dividend of Yen 16.50 per share, the total dividend for the fiscal year
ended March 31, 2011 will be Yen 33.00 per share.
5
*Consolidated Sales by Product Line
Imaging & Solutions (Sales down 4.3% to Yen 1,713.3 billion)
------------------------------------------------------------
Sales in the Imaging & Solutions segment which consists of Imaging Solutions and
Network System Solutions decreased by 4.3% from the previous corresponding
period, to Yen 1,713.3 billion.
Imaging Solutions (Sales down 5.7% to Yen 1,429.8 billion)
----------------------------------------------------------
Sales in this category decreased by 5.7% as compared to the previous
corresponding period, to Yen 1,429.8 billion. The sales would have
increased by 0.8% excluding the effects of foreign currency fluctuations.
As for sales of MFPs, while the sales of color products remained steady,
the sales of monochrome products decreased as compared to the previous
corresponding period. As for sales of production printing products, the
sales of color products increased as well.
Network System Solutions (Sales up 3.4% to Yen 283.4 billion)
-------------------------------------------------------------
Sales in this category increased by 3.4% as compared to the previous
corresponding period, to Yen 283.4 billion due mainly to expanding MDS
(Managed Document Services) and IT service around the world.
Industrial Products (Sales up 5.1% to Yen 106.8 billion)
--------------------------------------------------------
Sales in the Industrial Products segment increased by 5.1% as compared to the
previous corresponding period, to Yen 106.8 billion. Sales of semiconductor
devices, optical equipment and electronic components increased as compared to
the previous corresponding period.
Other (Sales down 2.0% to Yen 121.8 billion)
--------------------------------------------
Sales in the Other segment decreased by 2.0% as compared to the previous
corresponding period, to Yen 121.8 billion due to the decline in the sales of
digital cameras in the overseas market.
[Graph 1] Consolidated sales by product line
The graphs are omitted. The data in the omitted graphs can be shown at the
schedule 1 in APPENDIX B.
6
*Consolidated Sales by Geographic Area
Japan (Sales down 0.1% to Yen 875.8 billion)
--------------------------------------------
The Japanese economy had shown some moderate recovery from the second half of
the previous year. However, unpredictable situation remained because of the
sharp appreciation of the Yen against the U.S. dollar and the Euro as well as
decline of the stock market. The capital investments have been reduced due to
sluggish sales performance and appreciation of the yen, and personal consumption
remain weak. The business environment surrounding Ricoh continued to be severe.
In the Imaging & Solutions segment, the marketing group of Ricoh Company, Ltd.
and the seven domestic sales companies are integrated and reorganized into Ricoh
Japan Corporation. By the integration and reorganization, Ricoh sought to
improve its ability to improve management efficiency by building a sales
structure that will enable the Ricoh Group companies to make prompt decisions in
response to the diversifying needs of its customers. Sales in the Imaging &
Solutions segment decreased by 1.4% from the previous corresponding period, to
Yen 692.1 billion.
Sales in the Industrial Products segment increased by 16.5% as compared to the
previous corresponding period, to Yen 65.4 billion. Sales of semiconductor
devices, optical equipment and electronic components increased as compared to
the previous corresponding period.
Sales in the Other segment decreased mainly due to sluggish sales of digital
cameras.
Overall sales in Japan decreased by 0.1% from the previous corresponding period,
to Yen 875.8 billion.
The Americas (Sales down 6.4% to Yen 521.9 billion)
----------------------------------------------------
In the Americas, unpredictable situation remained despite the recovery in
individual consumption and capital investment in America, but due to the
strengthened sales structure and expansion of sales channel through the
acquisition of IKON in fiscal year 2008, sales in the Imaging & Solutions
segment, which was main segment, increased from the previous fiscal year on a
local currency basis. However, due to the abrupt appreciation of the Yen against
the U.S. dollar, the sales decreased on a yen basis.
As a result, overall sales in the Americas decreased by 6.4% from the previous
corresponding period, to Yen 521.9 billion. The sales in this area would have
increased by 1.5% excluding the effects of foreign currency fluctuations.
Europe (Sales down 9.7% to Yen 413.9 billion)
----------------------------------------------
In Europe, although the economy had shown recovery trend partially due to the
increase of European export to other regions derived from the depreciation of
the Euro, it remained uncertain due to the widening intra-regional economic
disparities derived from the financial crisis and employment insecurity in some
countries. In addition, the sharp depreciation of the Euro developed.
As a result, under such severe conditions surrounding Ricoh, overall sales in
Europe decreased by 9.7% from the previous corresponding period, to Yen 413.9
billion. The sales in this area would have increased by 4.2% excluding the
effects of foreign currency fluctuations.
Other (Sales up 5.5% to Yen 130.2 billion)
-------------------------------------------
The Other segment includes China, South East Asia and Oceania. The emerging
markets including China and India achieved strong growth. Ricoh strengthened
sales force mainly in the emerging markets. Consequently, despite the
appreciation of the yen, sales in the Imaging & Solutions segment increased from
the previous corresponding period.
As a result, overall sales in Other increased by 5.5% from the previous
corresponding period, to Yen 130.2 billion. The sales in this area would have
increased by 9.8% excluding the effects of foreign currency fluctuations.
[Graph 2] Consolidated sales by geographic area
The graphs are omitted. The data in the omitted graphs can be shown at the
schedule 2 in APPENDIX B.
7
*Segment Information
Operating Segment
-----------------
Imaging & Solutions
-------------------
Even though the sales of color products increased, overall sales in Imaging &
Solutions segment decreased by 4.3% from the previous corresponding period, to
Yen 1,713.3 billion due to the appreciation of the yen.
Operating income on net sales, despite the increased sales of value-added
high-margin products in addition to ongoing cost reduction, remained steady.
Operating income decreased by 4.3% from the previous corresponding period, to
Yen 134.4 billion.
Industrial Products
-------------------
Sales in the Industrial Products segment increased by 5.8% as compared to the
previous corresponding period, to Yen 112.2 billion. Sales of semiconductor
devices, optical equipment and electronic components increased as compared to
the previous corresponding period.
As a result, operating income in the Industrial Products segment amounted to Yen
1.0 billion (operating loss Yen 1.3 billion for the previous corresponding
period).
Other
-----
Sales in the Other segment decreased by 2.0% as compared to the previous
corresponding period, to Yen 121.8 billion. Sales of digital cameras and so on
decreased mainly in the overseas.
As a result, operating loss in the Other segment amounted to Yen 4.9 billion
(operating loss Yen 3.4 billion for the previous corresponding period).
(Billions of yen)
----------------------------------------------------------------------------------
Year ended Year ended
March 31, 2010 March 31, 2011 Change (%)
----------------------------------------------------------------------------------
Imaging & Solutions:
Net sales 1,790.2 1,713.3 -4.3
Operating income 140.4 134.4 -4.3
Operating income
on sales(%) 7.8 7.8 0.0points
----------------------------------------------------------------------------------
Industrial Products:
Net sales 106.1 112.2 5.8
Operating income -1.3 1.0 --
Operating income
on sales(%) -1.3 0.9 2.2points
----------------------------------------------------------------------------------
Other:
Net sales 124.4 121.8 -2.0
Operating income -3.4 -4.9 --
Operating income
on sales(%) -2.8 -4.0 -1.2points
----------------------------------------------------------------------------------
8
Geographic Segment
------------------
Japan
-----
Despite the global recession and the appreciation of the Yen, overall sales in
Japan segment increased by 1.0% from the previous corresponding period, to Yen
1,286.3 billion. Due mainly to the appreciation of the Yen, operating income
decreased by 9.6% from the previous corresponding period, to Yen 29.9 billion
and operating income on net sales decreased by 0.3 percentage points from the
previous corresponding period, to 2.3%.
The Americas
------------
Although the strengthened sales structure and expansion of sales channel through
the acquisition of IKON have contributed, overall sales in the Americas segment
decreased by 6.3% from the previous corresponding period, to Yen 524.8 billion
due to the appreciation of the Yen. Operating loss was significantly reduced as
compared to the previous corresponding period, to Yen 3.6 billion.
Europe
------
Overall sales in Europe segment decreased due to business recession in Europe by
9.4% to Yen 419.6 billion. On the other hand, operating income on net sales
increased by 0.1 percentage points from the pervious corresponding period due to
strengthening of sales structures and other restructuring activities. Operating
income decreased by 8.0% from the previous corresponding period, to Yen 27.7
billion.
Other
-----
As for overall sales in Other segment, Ricoh strengthened sales force mainly in
the emerging markets. Consequently, despite the appreciation of the yen, sales
increased from the previous corresponding period to Yen 273.4 billion. Operating
income decreased by 13.5% from the previous corresponding period, to Yen 12.4
billion.
[Graph 3] Geographic segment information
The graphs are omitted. The data in the omitted graphs can be shown at the
schedule 3 in APPENDIX B.
9
*Forecast for the entire fiscal year
Economic projections and Ricoh Group's strategies for fiscal year 2011
----------------------------------------------------------------------
Unpredictable situation is expected to continue in the Japanese economy as it is
hard to assess the aftermath of Great East Japan Earthquake.
As for the overseas economy, while it has shown some moderate recovery, it is
expected to remain uncertain due to some risk factors such as economic outlook
in Europe and the Americas, the soaring oil prices, and the appreciation of the
yen.
As for the business environment surrounding Ricoh Group, consumers' needs are
expected to become increasingly diversified. More focus is placed on offering
eco-friendly products on an industry-wide basis. Tremendous changes are taking
place in the industry with the increase in global mergers, acquisition and
strategic alliances by competition to strengthen service oriented business along
with strengthening presence in the emerging markets.
Under such situation, Ricoh Group will continue to strengthen its core business
and develop the new markets, new customers, and new services. In addition, while
Ricoh Group will create new innovations, Ricoh Group will continue the
group-wide activity of CRGP (Corporate Restructuring and Growth Project) and
seek further efficiency centering on cost reduction.
As for the forecast for the entire fiscal year, the unpredictable situation is
expected to continue as it is hard to assess the aftermath of Great East Japan
Earthquake.
For Ricoh, after recovery activities, the production bases have been restored to
the nearly normal operational status by the middle of April. For the future,
Ricoh is planning to minimize the influence on product supplies by continuing to
produce products with the stock components and use the alternative components to
eliminate a supply shortage. However, depending on circumstances of the electric
power supply and the restoration state of vendors, it would be possible to have
difficulty in producing some of our products. In addition, it remains possible
that Ricoh's sales of products and consumable supplies would be affected by the
reduction of customer's operations due to the saving on electricity, the decline
in customer's demands to invest and so on.
Our performance forecast is based on the assumptions at present.
However, as the situation will change from moment to moment, we will disclose
the forecast when it will change.
Our performance forecast for fiscal year ending March 31, 2012 is as follows:
Exchange Rate Assumptions for the full year ending March 31, 2012
US$ 1 = Yen 85.00 (Yen 85.77 in previous fiscal year)
EURO 1 = Yen 120.00 (Yen 113.28 in previous fiscal year)
(Billions of yen)
------------------------------------------------------------------------------
Year ended Year ending
March 31, 2011 March 31, 2012
(Results) (Forecast) Change
------------------------------------------------------------------------------
Domestic sales 875.8 900.0 2.8%
Overseas sales 1,066.1 1,190.0 11.6%
Net sales 1,942.0 2,090.0 7.6%
Gross profit 790.0 853.0 8.0%
Operating income 60.1 70.0 16.3%
Income before income taxes 45.4 63.0 38.8%
Net income attributable to
Ricoh Company, Ltd. 19.6 29.0 47.6%
------------------------------------------------------------------------------
Notes:
* Ricoh bases the forecast estimates for the year ending March 31, 2012 above
upon information currently available to management, which involves risks and
uncertainties that could cause actual results to differ materially from those
projected.
10
(2) FINANCIAL POSITION
A) Assets, Liabilities, and Equity at Year-End
(Billions of yen)
-----------------------------------------------------------------------------------
March 31, 2010 March 31, 2011 Change
-----------------------------------------------------------------------------------
Total Assets 2,383.9 2,262.3 -121.5
Total Equity 1,023.8 982.7 -41.1
Ricoh Company, Ltd. shareholders'
equity 973.3 929.8 -43.4
Ricoh Company, Ltd. shareholders'
equity ratio (%) 40.8% 41.1% 0.3points
-----------------------------------------------------------------------------------
For Assets, cash and cash equivalents decreased from the end of the previous
corresponding period due to decrease of interest-bearing debt. In addition, the
yen equivalent of foreign-currency-denominated assets decreased due to the
appreciation of the Yen developed from the previous fiscal year. As a result,
total assets decreased by Yen 121.5 billion from the end of the previous
corresponding period, to Yen 2,262.3 billion.
For Liabilities, interest-bearing debt decreased due to reduction of overseas
interest-bearing debt and redemption of debenture. As a result, total
liabilities decreased by Yen 80.4 billion from the end of the previous
corresponding period, to Yen 1,279.6 billion.
For Total Equity, retained earnings fluctuated due to payment of dividends and
net income attributable to Ricoh Company, Ltd. Moreover, increase in the amount
of foreign currency translation adjustments due to exchange rate fluctuations
caused other comprehensive income to increase from the previous corresponding
period. Total shareholders' investment decreased by Yen 41.1 billion from the
end of the previous corresponding period, to Yen 982.7 billion.
B) Cash Flows
(Billions of yen)
--------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2010 March 31, 2011 Change
--------------------------------------------------------------------------------------------
Cash flows from operating activities 190.7 130.0 -60.6
Cash flows from investing activities -89.5 -92.0 -2.4
Cash flows from financing activities -113.3 -92.1 21.2
Cash and Cash Equivalents at end of period 242.1 179.1 -62.9
--------------------------------------------------------------------------------------------
Net cash provided by operating activities decreased by Yen 60.6 billion from the
previous corresponding period, to Yen 130.0 billion due primarily to increase of
inventory.
Net cash used in investing activities increased by Yen 2.4 billion to Yen 92.0
billion from the previous corresponding period.
As a result, free cash flow generated from operating activities and investment
activities decreased by Yen 63.0 billion to Yen 38.0 billion from the previous
corresponding period.
Net cash used in financing activities amounted to Yen 92.1 billion due primarily
to decrease of interest bearing debt and payment of dividends.
As a result of the above, cash and cash equivalents as of the end of this fiscal
year decreased by Yen 62.9 billion from the end of the previous corresponding
period, to Yen 179.1 billion.
C) Cash Flow Indices
-----------------------------------------------------------------------------------------------------------------------
Year ended Year ended Year ended Year ended Year ended
March 31, 2007 March 31, 2008 March 31, 2009 March 31, 2010 March 31, 2011
-----------------------------------------------------------------------------------------------------------------------
Total Equity / Total assets 47.7% 48.8% 38.8% 40.8% 41.1%
Market capitalization / Total assets 86.4% 53.3% 33.6% 44.4% 31.3%
Interest bearing debt / Operating cash flow 2.5 2.0 8.9 3.6 4.8
Operating cash flow / Interest expense 22.8 40.2 14.9 23.4 15.3
-----------------------------------------------------------------------------------------------------------------------
Notes:
i. All indices are calculated based on consolidated data.
ii. Market capitalization equals the stock price at the end of fiscal year
multiples by the number of shares outstanding at the end of fiscal year.
iii. Operating cash flows is shown in consolidated statement of cash flow.
Interest bearing debt equals all debt in consolidated balance sheets.
11
(3) DIVIDEND POLICY
Ricoh endeavors to ensure that policies are regularly updated to take the
dividend payout ratio into consideration in the payment of dividends,
while at the same time increasing retained earnings for the enhancement
of corporate structure and the new business generation. Furthermore,
these retained earnings will be used both in the reinforcement of core
businesses and for investment in new fields with both medium-term and
long-term perspectives.
The total dividend per share for the fiscal year ended March 31, 2011
will be Yen 33.00 (same as the dividend for the fiscal year ended March
31, 2010) and for the fiscal year ending March 31, 2012 will be Yen 33.00
respectively.
(4) RISK FACTORS
Risks that may affect Ricoh's financial results and financial position
are listed below, but are not limited to them. Ricoh's business may in
the future also be affected by other risks that are currently unknown or
that are not currently considered significant or material.
-Ability to respond to rapid technological changes in the document
imaging and management industry
-Highly competitive markets
-The risks of international operations and the risks of overseas
expansion
-Economic outlooks in major markets
-Foreign exchange fluctuations
-Crude oil price fluctuations
-Government regulation that can limit its activities or increase its
cost of operations
-Internal control evaluations and attestation over financial reporting
under section 404 of the Sarbanes-Oxley Act of 2002
-Dependence on protecting its intellectual property rights
-Dependence on securing and retaining specially skilled personnel
-Increase of employee benefit obligations
-Environmental laws and regulations
-Risks associated with unauthorized disclosure of information
-Product liability claims that could significantly affect its
financial condition
-Alliances with other entities
-Risks associated with divulging of information
-Catastrophic disaster, information technology problems or infectious
diseases
-Fluctuations in a state of electricity supply
-Restoration state of vender's production bases
12
2. GROUP POSITION
The Ricoh Group comprises 227 subsidiaries and 7 affiliates as of March 31,
2011.
Their development, manufacturing, sales, and service activities center on
Imaging & Solutions, Industrial Products, and Other.
Ricoh Company, Ltd., a parent company, heads development. The parent company and
subsidiaries or affiliates maintain an integrated domestic and international
manufacturing structure. Below, we have listed our main product areas and the
positions of key subsidiaries and affiliates.
[Imaging & Solutions]
In this business category, Ricoh provides products and systems that support the
enhancement of the office productivity of customers. Major products include:
Digital/analog copiers, MFPs (multifunctional printers), laser printers,
facsimile machines, and digital duplicators. Ricoh also provides solution
systems including personal computers and servers, utilizing its information
technology. Another business Ricoh also provides are support, service, and
related supplies, as well as support and service including IT environment setup
and network administration.
[Main Subsidiaries and Affiliates]
Production
Japan...Tohoku Ricoh Co., Ltd., Ricoh Elemex Corporation, Ricoh Unitechno
Co., Ltd., Hasama Ricoh Inc., Ricoh Microelectronics Co., Ltd., Ricoh
Keiki Co., Ltd., and Ricoh Printing Systems, Ltd.
The Americas...Ricoh Electronics, Inc.
Europe... Ricoh UK Products Ltd., Ricoh Industrie France S.A.S.
Other regions...Ricoh Asia Industry (Shenzhen) Ltd., Shanghai Ricoh Digital
Equipment Co., Ltd. and Ricoh Manufacturing (Thailand) Ltd.
Sales and Service
Japan ...Ricoh Japan Corporation, Ricoh Technosystems Co., Ltd., Ricoh IT
Solutions Co.,Ltd., Ricoh Leasing Co., Ltd. and Ricoh Logistics System
Co., Ltd.
The Americas...Ricoh Americas Corporation, InfoPrint Solutions Company, LLC,
IKON Office Solutions, Inc.
Europe...Ricoh Europe PLC, Ricoh Deutschland GmbH, Ricoh UK Ltd., Ricoh
France S.A.S., Ricoh Espana S.L.U., Ricoh Italia Srl. and NRG Group PLC
Other regions...Ricoh China Co., Ltd., Ricoh Hong Kong Ltd., Ricoh Asia
Pacific Operations Ltd., Ricoh Asia Pacific Pte. Ltd., Ricoh Australia
Pty, Ltd. and Ricoh New Zealand Ltd.
[Industrial Products]
Manufacturing and marketing thermal media, optical equipments, semiconductors,
electronic component and measuring equipments
[Main Subsidiaries and Affiliates]
Production and Sales
Japan...Ricoh Optical Industries Co., Ltd., Ricoh Elemex Corporation and
Ricoh Microelectronics Co., Ltd.
The Americas...Ricoh Electronics, Inc.
Europe...Ricoh Industrie France S.A.S.
[Other]
Supplying digital camera, and providing leasing and logistics services
[Main Subsidiaries and Affiliates]
Sales
Ricoh Americas Corporation, Ricoh Europe PLC
Other
Ricoh Leasing Co., Ltd., Ricoh Logistics System Co., Ltd.
[Chart of Business System]
The following chart is showing the group positions.
13
[Chart of Business System]
The chart of group position is omitted.
14
3. MANAGEMENT POLICY
(1) Basic Management Policy
Ricoh Group aims "To be the most trusted brand with irresistible appeal in the
global market.", and makes its missions "to be committed to providing excellence
to improve the quality of living" and "to save the precious earth and fulfill
its responsibilities for creating sustainable society".
To these ends, Ricoh is providing innovative products and services to all
customers who handle information at work in offices and in their lives out of
the office, based on the Ricoh values of "Harmonize with the environment",
"Simplify your life and work", and "Support knowledge management".
(2) Medium and Long Term Management Strategy
Ricoh's main business segment of Imaging & Solutions will continue to release
new products that will improve compatibility with network solutions, improve
image quality, comply with environmental regulations.
By making a strong showing in customer contact, abundance of products, proposal
of solution, global business deployment, and image processing technology of
Ricoh Group, we will accommodate more diverse and wider clients' needs, and will
reinforce further this business.
Specifically, "Work flow", "Security", "TCO (Total Cost of Ownership)",
"Compliance", and "Environment" are important issues for customers. Ricoh will
focus on these to provide greater customer value.
For example, Ricoh will construct and apply Managed Document Services that
provide document systems with centralized storage, search and output functions,
and management services of customer's concentrated output center and multiple
output devices. Furthermore, Ricoh will support utilization of IT solutions and
provide IT services emphasized on customer's security and business continuity,
and thereby contribute to raising overall customer business productivity.
Ricoh continues to develop production printing business, and provides suitable
solutions such as workflow improvement, in order to meet the requirements of all
customers.
In the industrial market, allocation of business resources is focused on
businesses where large growth is expected. Ricoh will put efforts into
strengthening cooperation between technical fields and business areas in order
to combine diverse fields and create new businesses.
Ricoh is also making further advances in business development in emerging
markets mainly China, in both the Imaging & office solutions market and the
industrial market.
In order to increase or create customer value and boost earning power in each
business, it is important to secure competitive superiority through technology.
Ricoh will continue to actively work to strengthen its technological
capabilities.
Basic strategy achievements this period until today are as follows.
In the Imaging & Solutions market, Ricoh continually creates new color
multifunction machines and color laser printers, further enhancing the product
line. As to digital color multifunction equipments, Ricoh released imagio MP
C5001/C4001/C3301/C2801 series with achieving excellent environmental
performance and pursuing operational efficiency improvement and usability.
Ricoh released imagio MP C2201 series with the advanced environmental
performance and pursuing cost saving and operational efficiency improvement.
By these new product launches, Ricoh's stronger product line has led it to
attain large market shares in color copier/multifunction equipment markets in
Japan and overseas.
15
As to color printers, Ricoh released SP C320 with achieving durability,
environmental performance, and variety of paper sizes mainly for the small and
medium-sized offices. And we also have introduced SP C420 as top-of-the-line
A4-sized color laser printers mainly for the large and medium-sized offices. It
achieves high paper feeding power, advanced security functions, and improved
operability as well as high productivity and durability.
As to production printing business, Ricoh released RICOH Pro C901/C901S with
higher image quality, variety of paper sizes, and improved operability in
addition to high-speed performance. As a result, it has led to attain large
market shares in Japan and overseas.
Additionally, Ricoh entered into a global strategic alliance with Heidelberger
Druckmaschinen AG, that is a Germany-based major printing company, to strengthen
production printing business.
Ricoh has initiated developments of new value added device and module business
by collaborating in the area of marketing, development, manufacture and sales
for the industrial business such as semiconductor, electrical component and
optical equipment.
Finally, as to projection system business that was launched as part of our
mission to increase the value provided to our customers in the field of
communications, including projection and sound, Ricoh released the new IPSiO PJ
series. Ricoh has provided entire services from the equipment sales to solution
proposals to meet customers' needs.
(3) Issues to Face
As for the overseas economy, while it has shown some moderate recovery, it is
expected to remain uncertain due to some risk factors such as economic outlooks
in Europe and the Americas, the soaring crude oil prices, and the appreciation
of the yen.
While the recovery of production bases and sales offices that were damaged by
the Great East Japan Earthquake has been going on, corporate business may be
severely affected by electric shortage and difficulty in the procurement of
parts from suppliers to create finished products due to the disaster.
Under such situation, Ricoh Group will strive not only to provide customers with
the goods and services for their reconstruction and business continuity but also
to minimize the effect on Ricoh's business performance due to the disaster.
Ricoh will strive to further execute "high efficiency management," one of its
ongoing challenges. Ricoh will accelerate the transformation toward robust
corporate culture under which steady profits can be maintained and its growth
can be achieved by meeting fluctuations in demand. Through activities under the
CRGP (Corporate Restructuring and Growth Project), Ricoh will increase
operational efficiency via a number of measures, including creating new
business, focusing on core business, integrating development and production
bases and reorganizing of sales forces through a number of measurements. In
addition, Ricoh will review its utilization of human resources, and transfer a
substantial number of employees from existing business domains to future growth
domains.
In the Imaging & Solutions segment, while Ricoh will use the management
resources acquired through merger and acquisition to generate profit more
effectively, Ricoh will rebuild the group structure such as sales, research and
development. Ricoh will accelerate the global development of managed document
services and IT services.
In the production printing business, while Ricoh will maintain existing
forward-looking development, Ricoh will enhance the marketing function. Through
this, Ricoh will reap revenues from the results of the series of up-front
investments made to date and expand operations.
Looking at overseas regions, Ricoh will apply management resources in a focused
manner with a view to expanding business in emerging markets such as China and
India by reinforcing the sales network and enhancing the product lineup.
Ricoh will also work to cultivate new businesses that will contribute to
long-term growth. Ricoh will launch Unified Communication System (UCS) business
that will focus on providing a more efficient method of communicating images and
voice through next-generation products. New products and services from this
business are planned to be released after summer 2011. Along with UCS, Ricoh
will launch a new Eco Solutions business. Focus will be on providing
eco-friendly products and services. Amid a growing interest in global
environmental protection, large market growth is expected for LED illumination,
which consumes less electricity and generates lower CO2 emissions than
traditional incandescent and fluorescent lamps. As a first step, Ricoh will
enter the LED illumination market utilizing our unique technologies and global
sales and services network.
By continuing to execute innovation to provide customers with new values, Ricoh
will take on the challenge of business activities that exceed customer
expectations.
In the back-office, Ricoh accelerate the corporate rationalization and
re-engineering by making full use of IT. Through this, Ricoh will back up not
only traditional business but also new business.
Through these activities, Ricoh intends to enhance the relationship of trust
with customers around the world, and build a strong global RICOH brand.
Finally, in order for today's companies to exist long into the future, they are
required to contribute to the sustainability of the global environment and the
human race. Ricoh is conducting an environmental management that enables us to
conserve the environment while generating profits at the same time. With the
participation of all employees around the globe, Ricoh aims to meet its medium
and long-term environmental targets based on the pillars of process reform and
technological innovation. Meanwhile, Ricoh will aim to provide customers with
products and services that carry a lighter environmental load at time of use,
and thereby contribute proactively to the creation of office environments for
the low-carbon society.
16
4. CONSOLIDATED FINANCIAL STATEMENTS
(1) CONSOLIDATED BALANCE SHEETS
(March 31, 2010 and 2011)
Assets (Millions of yen)
---------------------------------------------------------------------------------------------------------------
March 31, 2010 March 31, 2011 Change
---------------------------------------------------------------------------------------------------------------
Current Assets
Cash and time deposits 243,888 181,179 -62,709
Trade receivables 667,614 657,817 -9,797
Inventories 169,251 171,033 1,782
Other current assets 63,859 63,990 131
Total Current Assets 1,144,612 1,074,019 -70,593
Fixed Assets
Tangible fixed assets 263,021 264,740 1,719
Finance receivables 445,896 445,782 -114
Other investments 530,414 477,855 -52,559
Total Fixed Assets 1,239,331 1,188,377 -50,954
---------------------------------------------------------------------------------------------------------------
Total Assets 2,383,943 2,262,396 -121,547
---------------------------------------------------------------------------------------------------------------
Note:
Contents of cash and time deposits:
Cash and cash equivalents 242,165 179,169
Time deposits 1,723 2,010
Liabilities and Equity (Millions of yen)
---------------------------------------------------------------------------------------------------------------
March 31, 2010 March 31, 2011 Change
---------------------------------------------------------------------------------------------------------------
Current Liabilities
Trade payables 273,397 250,483 -22,914
Short-term borrowings 169,727 151,023 -18,704
Other current liabilities 217,280 213,194 -4,086
Total Current Liabilities 660,404 614,700 -45,704
Fixed Liabilities
Long-term indebtedness 514,718 479,422 -35,296
Accrued pension and severance costs 140,460 140,975 515
Other fixed liabilities 44,487 44,535 48
Total Fixed Liabilities 699,665 664,932 -34,733
---------------------------------------------------------------------------------------------------------------
Total Liabilities 1,360,069 1,279,632 -80,437
--------------------------------------------------------------------------------------------------------------
Equity
Common stock 135,364 135,364 --
Additional paid-in capital 186,083 186,083 --
Retained earnings 820,701 815,970 -4,731
Accumulated other comprehensive loss -132,051 -170,702 -38,651
Treasury stock -36,756 -36,838 -82
Ricoh Company, Ltd. shareholders' equity 973,341 929,877 -43,464
Noncontrolling interests 50,533 52,887 2,354
---------------------------------------------------------------------------------------------------------------
Total Equity 1,023,874 982,764 -41,110
---------------------------------------------------------------------------------------------------------------
Total Liabilities and Equity 2,383,943 2,262,396 -121,547
---------------------------------------------------------------------------------------------------------------
Note: Accumulated other comprehensive income (loss);
Net unrealized holding gains on available-for-sale
securities 2,372 2,466 94
Pension liability adjustments -47,335 -47,514 -179
Net unrealized losses on derivative instruments -1,157 -1,168 -11
Cumulative translation adjustments -85,931 -124,486 -38,555
Reference: Exchange rate March 31, 2010 March 31, 2011
US$ 1 Yen 93.04 Yen 83.15
EURO 1 Yen 124.92 Yen 117.57
17
(2) CONSOLIDATED STATEMENTS OF INCOME
(Three months ended March 31, 2010 and 2011) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2010 March 31, 2011 Change %
-----------------------------------------------------------------------------------------------------------------------------
Net sales 541,606 502,962 -38,644 -7.1
Cost of sales 327,669 312,367 -15,302 -4.7
Percentage of net sales (%) 60.5 62.1
Gross Profit 213,937 190,595 -23,342 -10.9
Percentage of net sales (%) 39.5 37.9
Selling, general and administrative expenses 185,672 184,388 -1,284 -0.7
Percentage of net sales (%) 34.3 36.7
Operating income 28,265 6,207 -22,058 -78.0
Percentage of net sales (%) 5.2 1.2
Other (income) expense
Interest and dividend income 1,256 832 -424 -33.8
Percentage of net sales (%) 0.2 0.2
Interest expense 1,988 2,682 694 34.9
Percentage of net sales (%) 0.4 0.5
Loss on impairment of securities 56 1,639 1,583 --
Percentage of net sales (%) 0.0 0.3
Other, net 776 -1,338 -2,114 --
Percentage of net sales (%) 0.1 -0.3
Income before income taxes
and equity in earnings of affiliates 26,701 4,056 -22,645 -84.8
Percentage of net sales (%) 4.9 0.8
Provision for income taxes 12,740 4,471 -8,269 -64.9
Percentage of net sales (%) 2.4 0.9
Equity in earnings of affiliates -0 -7 -7 --
Percentage of net sales (%) -0.0 -0.0
Consolidated net income 13,961 -422 -14,383 --
Percentage of net sales (%) 2.6 -0.1
Net income attributable to noncontrolling interests 504 268 -236 -46.8
Percentage of net sales (%) 0.0 0.1
Net income attributable to Ricoh Company, Ltd. 13,457 -690 -14,147 --
Percentage of net sales (%) 2.5 -0.1
-----------------------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 90.76 Yen 82.32
EURO 1 Yen 125.64 Yen 112.51
(Year ended March 31, 2010 and 2011) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2010 March 31, 2011 Change %
-----------------------------------------------------------------------------------------------------------------------------
Net sales 2,016,337 1,942,013 -74,324 -3.7
Cost of sales 1,193,994 1,151,939 -42,055 -3.5
Percentage of net sales (%) 59.2 59.3
Gross Profit 822,343 790,074 -32,269 -3.9
Percentage of net sales (%) 40.8 40.7
Selling, general and administrative expenses 756,346 729,878 -26,468 -3.5
Percentage of net sales (%) 37.5 37.6
Operating income 65,997 60,196 -5,801 -8.8
Percentage of net sales (%) 3.3 3.1
Other (income) expense
Interest and dividend income 3,472 2,986 -486 -14.0
Percentage of net sales (%) 0.2 0.2
Interest expense 8,144 8,498 354 4.3
Percentage of net sales (%) 0.4 0.4
Loss on impairment of securities 169 1,844 1,675 991.1
Percentage of net sales (%) 0.0 0.1
Other, net 3,632 7,440 3,808 104.8
Percentage of net sales (%) 0.2 0.4
Income before income taxes
and equity in earnings of affiliates 57,524 45,400 -12,124 -21.1
Percentage of net sales (%) 2.9 2.3
Provision for income taxes 27,678 22,621 -5,057 -18.3
Percentage of net sales (%) 1.4 1.2
Equity in earnings of affiliates 6 -22 -28 --
Percentage of net sales (%) 0.0 -0.0
Consolidated net income 29,852 22,757 -7,095 -23.8
Percentage of net sales (%) 1.5 1.2
Net income attributable to noncontrolling interests 1,979 3,107 1,128 57.0
Percentage of net sales (%) 0.1 0.2
Net income attributable to Ricoh Company, Ltd. 27,873 19,650 -8,223 -29.5
Percentage of net sales (%) 1.4 1.0
-----------------------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 92.91 Yen 85.77
EURO 1 Yen 131.21 Yen 113.28
18
(3)-1. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Three months ended March 31, 2010 and 2011) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2010 March 31, 2011 Change %
-----------------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 402,911 376,940 -25,971 -6.4
Percentage of net sales (%) 74.4 74.9
Network System Solutions 81,242 71,960 -9,282 -11.4
Percentage of net sales (%) 15.0 14.4
Total Imaging & Solutions 484,153 448,900 -35,253 -7.3
Percentage of net sales (%) 89.4 89.3
-----------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 25,335 24,694 -641 -2.5
Percentage of net sales (%) 4.7 4.9
-----------------------------------------------------------------------------------------------------------------
[Other]
Other 32,118 29,368 -2,750 -8.6
Percentage of net sales (%) 5.9 5.8
-----------------------------------------------------------------------------------------------------------------
Grand Total 541,606 502,962 -38,644 -7.1
Percentage of net sales (%) 100.0 100.0
-----------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 90.76 Yen 82.32
EURO 1 Yen 125.64 Yen 112.51
(Year ended March 31, 2010 and 2011) (Millions of yen)
------------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2010 March 31, 2011 Change %
------------------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 1,516,172 1,429,824 -86,348 -5.7
Percentage of net sales (%) 75.2 73.6
Network System Solutions 274,071 283,483 9,412 3.4
Percentage of net sales (%) 13.6 14.6
Total Imaging & Solutions 1,790,243 1,713,307 -76,936 -4.3
Percentage of net sales (%) 88.8 88.2
------------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 101,692 106,830 5,138 5.1
Percentage of net sales (%) 5.0 5.5
------------------------------------------------------------------------------------------------------------------
[Other]
Other 124,402 121,876 -2,526 -2.0
Percentage of net sales (%) 6.2 6.3
------------------------------------------------------------------------------------------------------------------
Grand Total 2,016,337 1,942,013 -74,324 -3.7
Percentage of net sales (%) 100.0 100.0
------------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 92.91 Yen 85.77
EURO 1 Yen 131.21 Yen 113.28
* Each category includes the following product line:
Imaging Solutions Digital PPCs, color PPCs, digital duplicators,
facsimile machines, analog PPCs, diazo copiers,
scanners, MFPs(multifunctional printers), laser
printers and software
Network System Solutions Personal computers, PC servers, network systems and
network related software
Industrial Products Thermal media, optical equipments, semiconductors,
electronic component and measuring equipments
Other Digital camera, and so on
19
(3)-2. CONSOLIDATED SALES BY GEOGRAPHIC AREA
(Three months ended March 31, 2010 and 2011) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2010 March 31, 2011 Change %
-----------------------------------------------------------------------------------------------------------------
[Domestic] 250,051 226,437 -23,614 -9.4
Percentage of net sales (%) 46.2 45.0
[Overseas] 291,555 276,525 -15,030 -5.2
Percentage of net sales (%) 53.8 55.0
The Americas 141,290 132,546 -8,744 -6.2
Percentage of net sales (%) 26.1 26.4
Europe 117,117 110,405 -6,712 -5.7
Percentage of net sales (%) 21.6 22.0
Other 33,148 33,574 426 1.3
Percentage of net sales (%) 6.1 6.6
Grand Total 541,606 502,962 -38,644 -7.1
Percentage of net sales (%) 100.0 100.0
-----------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 90.76 Yen 82.32
EURO 1 Yen 125.64 Yen 112.51
(Year ended March 31, 2010 and 2011) (Millions of yen)
------------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2010 March 31, 2011 Change %
------------------------------------------------------------------------------------------------------------------
[Domestic] 876,578 875,859 -719 -0.1
Percentage of net sales (%) 43.5 45.1
[Overseas] 1,139,759 1,066,154 -73,605 -6.5
Percentage of net sales (%) 56.5 54.9
The Americas 557,687 521,970 -35,717 -6.4
Percentage of net sales (%) 27.7 26.9
Europe 458,584 413,936 -44,648 -9.7
Percentage of net sales (%) 22.7 21.3
Other 123,488 130,248 6,760 5.5
Percentage of net sales (%) 6.1 6.7
Grand Total 2,016,337 1,942,013 -74,324 -3.7
Percentage of net sales (%) 100.0 100.0
------------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 92.91 Yen 85.77
EURO 1 Yen 131.21 Yen 113.28
20
(4) CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Year ended March 31, 2010 (Millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
Accumulated
other Ricoh
Additional comprehensive Company, Ltd.
Common paid-in Retained income Treasury shareholders' Noncontrolling
stock capital earnings (loss) stock equity interest Total equity
--------------------------------------------------------------------------------------------------------------------------------
Beginning balance 135,364 186,083 815,725 -125,121 -36,678 975,373 48,977 1,024,350
--------------------------------------------------------------------------------------------------------------------------------
Comprehensive income
Net income 27,873 27,873 1,979 29,852
Unrealized gains on
securities 524 524 10 534
Pension liability
adjustment 6,966 6,966 65 7,031
Unrealized gains(losses)
on derivatives -784 -784 4 -780
Cumulative translation
adjustments -13,636 -13,636 2 -13,634
----------------------------------------------
Total comprehensive income 20,943 2,060 23,003
----------------------------------------------
Net changes in treasury stock -78 -78 -78
Loss on disposal of treasury
stock -39 -39 -39
Dividends declared and
approved to Ricoh Company,
Ltd. Shareholders -22,858 -22,858 -22,858
Dividends to
noncontrolling interests -504 -504
--------------------------------------------------------------------------------------------------------------------------------
Ending balance 135,364 186,083 820,701 -132,051 -36,756 973,341 50,533 1,023,874
================================================================================================================================
Year ended March 31, 2011 (Millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
Accumulated
other Ricoh
Additional comprehensive Company, Ltd.
Common paid-in Retained income Treasury shareholders' Noncontrolling
stock capital earnings (loss) stock equity interest Total equity
--------------------------------------------------------------------------------------------------------------------------------
Beginning balance 135,364 186,083 820,701 -132,051 -36,756 973,341 50,533 1,023,874
Cumulative effect of a change
in accounting principle -
adoption of accounting
guidance for a variable
interest entity, net of tax -410 -410 -392 -802
--------------------------------------------------------------------------------------------------------------------------------
Beginning balance (after
adjustment) 135,364 186,083 820,291 -132,051 -36,756 972,931 50,141 1,023,072
--------------------------------------------------------------------------------------------------------------------------------
Comprehensive income(loss)
Net income 19,650 19,650 3,107 22,757
Unrealized gains (losses)
on securities 94 94 -6 88
Pension liability
adjustment -179 -179 -7 -186
Unrealized losses on
derivatives -11 -11 -22 -33
Cumulative translation
adjustments -38,555 -38,555 269 -38,286
----------------------------------------------
Total comprehensive income
(loss) -19,001 3,341 -15,660
----------------------------------------------
Net changes in treasury stock -82 -82 -82
Loss on disposal of treasury
stock -28 -28 -28
Dividends declared and
approved to Ricoh Company,
Ltd. Shareholders -23,943 -23,943 -23,943
Dividends to noncontrolling
interests -595 -595
--------------------------------------------------------------------------------------------------------------------------------
Ending balance 135,364 186,083 815,970 -170,702 -36,838 929,877 52,887 982,764
================================================================================================================================
21
(5) CONSOLIDATED STATEMENTS OF CASH FLOWS
(Year ended March 31, 2010 and 2011) (Millions of yen)
----------------------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2010 March 31, 2011
----------------------------------------------------------------------------------------------------------------------------
I. Cash Flows from Operating Activities:
Consolidated net income 29,852 22,757
Adjustments to reconcile net income to net cash provided by operating activities--
Depreciation and amortization 98,941 93,400
Equity in earnings of affiliates, net of dividends received -6 22
Deferred income taxes 183 956
Loss on disposal and sales of tangible fixed assets 2,586 1,507
Loss on impairment of securities 169 1,844
Pension and severance costs, less payments -2,677 -971
Changes in assets and liabilities--
Decrease in trade receivables 5,475 1,865
(Increase) Decrease in inventories 19,599 -11,237
Decrease in finance receivables 23,397 13,870
Decrease in trade payables -10,124 -14,048
Increase in accrued income taxes and accrued expenses and other 15,589 14,725
Other, net 7,719 5,360
----------------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 190,703 130,050
----------------------------------------------------------------------------------------------------------------------------
II. Cash Flows from Investing Activities:
Proceeds from sales of property, plant and equipment 1,591 1,387
Expenditures for tangible fixed assets -66,979 -66,976
Expenditures for intangible fixed assets -13,383 -18,806
Payments for purchases of available-for-sale securities -701 -235
Proceeds from sales of available-for-sale securities 1,027 126
(Increase) Decrease in time deposits 249 -401
Purchase of business, net of cash acquired -4,760 -1,415
Other, net -6,614 -5,688
----------------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities -89,570 -92,008
----------------------------------------------------------------------------------------------------------------------------
III. Cash Flows from Financing Activities:
Proceeds from long-term indebtedness 46,965 58,622
Repayment of long-term indebtedness -66,564 -87,147
Decrease in short-term borrowings, net -105,250 -30,729
Proceeds from issuance of long-term debt securities 55,000 79,741
Repayment of long-term debt securities -20,000 -87,975
Dividend paid -22,858 -23,943
Payment for purchase of treasury stock -183 -157
Other, net -488 -520
----------------------------------------------------------------------------------------------------------------------------
Net cash used in financing activities -113,378 -92,108
----------------------------------------------------------------------------------------------------------------------------
IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents -4,074 -8,930
----------------------------------------------------------------------------------------------------------------------------
V. Net Decrease in Cash and Cash Equivalents -16,319 -62,996
----------------------------------------------------------------------------------------------------------------------------
VI. Cash and Cash Equivalents at Beginning of Year 258,484 242,165
----------------------------------------------------------------------------------------------------------------------------
VII. Cash and Cash Equivalents at End of Year 242,165 179,169
----------------------------------------------------------------------------------------------------------------------------
22
(6) NOTE FOR GOING CONCERN ASSUMPTION
Not applicable.
(7) SIGNIFICANT ACCOUNTING POLICIES (CONSOLIDATED)
A) CHANGES IN THE SCALE OF CONSOLIDATION AND THE APPLICATION OF THE EQUITY
METHOD FROM APRIL 1, 2010 TO MARCH 31, 2011.
Consolidated subsidiaries:
10 Additions
49 Removals
Companies accounted for by the equity method:
1 Additions
- Removals
B) CONSOLIDATED ACCOUNTING POLICIES (SUMMARY)
a. Principles of Consolidation
The consolidated financial statements include the accounts of Ricoh and its
consolidated subsidiaries. Investments in 20% to 50% owned companies when the
Company has the ability to exercise significant influence are accounted for on
the equity basis. All significant inter-company balances and transactions have
been eliminated in consolidation.
b. Securities
In conformity with FASB Accounting Standards Codification (ASC) 320, "Debt and
Equity Securities" (former SFAS No.115), securities are mainly classified as
available-for-sale securities. Available-for-sale securities are reported at
fair value with unrealized gains and losses, net of related taxes, excluded from
earnings and reported in accumulated other comprehensive income (loss).
The cost of the securities sold is computed based on the average cost of each
security held at the time of sale.
c. Inventories
Inventories are mainly stated at the lower of average cost or market. Inventory
costs include raw materials, labor and manufacturing overheads.
d. Property, Plant and Equipment
Depreciation of property, plant and equipment is computed principally by using
the declining-balance method over the estimated useful lives. Most of the
foreign subsidiaries have adopted the straight-line method for computing
depreciation. Certain leased buildings, machinery and equipment are accounted
for as capital leases in conformity with ASC 840 "Accounting for Leases.",
(former SFAS No.13).
e. Goodwill and Other Intangible Assets
In conformity with ASC 350, "Goodwill and Other Intangible Assets" (former SFAS
No.142) , Goodwill and intangible asset determined to have an indefinite useful
life are not amortized. ASC 350 requires annual impairment testing thereof.
f. Pension and Retirement Allowances Plans
The measurement of pension costs and liabilities is determined in accordance
with ASC 715, "Retirement Benefits" (former SFAS No.87 and SFAS No.158).
g. Use of Estimates
Management of the Company has made a number of estimates and assumptions that
affect the reported amounts of assets, liabilities, revenues and expenses,
including impairment losses of long-lived assets and the disclosures of fair
value of financial instruments and contingent assets and liabilities, to prepare
these financial statements in conformity with accounting principles generally
accepted in the United States of America. Actual results could differ from those
estimates.
23
(8) CHANGES IN SIGNIFICANT ACCOUNTING POLICIES (CONSOLIDATED)
CHANGES IN ACCOUNTING METHOD
Ricoh adopted the FASB Accounting Standards Codification ("ASC") 860 "Transfers
and Servicing" updated by the FASB issued Accounting Standard Update ("ASU") No.
2009-16, "Accounting for Transfers of Financial Assets" in this fiscal year.
This statement eliminates the concept of a qualifying special-purpose entity
("QSPE"), establishes conditions for reporting a transfer of a portion of a
financial asset as a sale, clarifies the financial-asset derecognition criteria,
revises how interests retained by the transferor in a sale of financial assets
initially are measured.
Ricoh also adopted FASB ASC 810 "Consolidation" updated by the FASB issued ASU
No. 2009-17, "Improvements to Financial Reporting by Enterprises Involved with
Variable Interest Entities" in this fiscal year. This accounting standard
requires an enterprise to perform an analysis to identify the primary
beneficiary of a variable interest entity and also requires ongoing
reassessments of whether an enterprise is the primary beneficiary of a variable
interest entity.
Ricoh recognized Yen 24,309 million as leasing receivables and Yen 20,241
million as current portion of long-term indebtedness and long-term indebtedness
on Consolidated Balance Sheets to conform with these FASB ASC. The adoption of
these FASB ASC did not have a material impact on cumulative effect on retained
earnings.
24
(9) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A) SEGMENT INFORMATION
a. Operating Segment Information
(Three months ended March 31, 2010 and 2011) (Millions of yen)
-------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2010 March 31, 2011 Change %
-------------------------------------------------------------------------------------------------------------------------
IMAGING & SOLUTIONS:
Net sales:
External customers 484,153 448,900 -35,253 -7.3
Intersegment -- -- --
Total 484,153 448,900 -35,253 -7.3
-------------------------------------------------------------------------------------------------------------------------
Operating expenses 436,715 422,592 -14,123 -3.2
-------------------------------------------------------------------------------------------------------------------------
Operating income 47,438 26,308 -21,130 -44.5
Operating income on sales in Imaging & Solutions (%) 9.8 5.9
-------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PRODUCTS:
Net sales:
External customers 25,335 24,694 -641 -2.5
Intersegment 1,283 1,266 -17 -1.3
Total 26,618 25,960 -658 -2.5
-------------------------------------------------------------------------------------------------------------------------
Operating expenses 26,939 25,729 -1,210 -4.5
-------------------------------------------------------------------------------------------------------------------------
Operating income -321 231 552 --
Operating income on sales in Industrial Products (%) -1.2 0.9
-------------------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
External customers 32,118 29,368 -2,750 -8.6
Intersegment -- -- --
Total 32,118 29,368 -2,750 -8.6
-------------------------------------------------------------------------------------------------------------------------
Operating expenses 33,579 32,746 -833 -2.5
-------------------------------------------------------------------------------------------------------------------------
Operating income -1,461 -3,378 -1,917 --
Operating income on sales in Other (%) -4.5 -11.5
-------------------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -1,283 -1,266 17
Total -1,283 -1,266 17 --
-------------------------------------------------------------------------------------------------------------------------
Operating expenses:
Intersegment -1,288 -1,266 22
Corporate 17,396 16,954 -442
Total 16,108 15,688 -420 --
-------------------------------------------------------------------------------------------------------------------------
Operating income -17,391 -16,954 437 --
-------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
External customers 541,606 502,962 -38,644 -7.1
Intersegment -- -- --
Total 541,606 502,962 -38,644 -7.1
-------------------------------------------------------------------------------------------------------------------------
Operating expenses 513,341 496,755 -16,586 -3.2
-------------------------------------------------------------------------------------------------------------------------
Operating income 28,265 6,207 -22,058 -78.0
Operating income on consolidated net sales (%) 5.2 1.2
-------------------------------------------------------------------------------------------------------------------------
25
(Year ended March 31, 2010 and 2011) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2010 March 31, 2011 Change %
-----------------------------------------------------------------------------------------------------------------
IMAGING & SOLUTIONS:
Net sales:
External customers 1,790,243 1,713,307 -76,936 -4.3
Intersegment -- -- --
Total 1,790,243 1,713,307 -76,936 -4.3
-----------------------------------------------------------------------------------------------------------------
Operating expenses 1,649,820 1,578,896 -70,924 -4.3
-----------------------------------------------------------------------------------------------------------------
Operating income 140,423 134,411 -6,012 -4.3
Operating income on sales in Imaging & Solutions (%) 7.8 7.8
-----------------------------------------------------------------------------------------------------------------
INDUSTRIAL PRODUCTS:
Net sales:
External customers 101,692 106,830 5,138 5.1
Intersegment 4,436 5,413 977 22.0
Total 106,128 112,243 6,115 5.8
-----------------------------------------------------------------------------------------------------------------
Operating expenses 107,483 111,237 3,754 3.5
-----------------------------------------------------------------------------------------------------------------
Operating income -1,355 1,006 2,361 --
Operating income on sales in Industrial Products (%) -1.3 0.9
-----------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
External customers 124,402 121,876 -2,526 -2.0
Intersegment -- -- --
Total 124,402 121,876 -2,526 -2.0
-----------------------------------------------------------------------------------------------------------------
Operating expenses 127,849 126,787 -1,062 -0.8
-----------------------------------------------------------------------------------------------------------------
Operating income -3,447 -4,911 -1,464 --
Operating income on sales in Other (%) -2.8 -4.0
-----------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -4,436 -5,413 -977
Total -4,436 -5,413 -977 --
-----------------------------------------------------------------------------------------------------------------
Operating expenses:
Intersegment -4,423 -5,420 -997
Corporate 69,611 70,317 706
Total 65,188 64,897 -291 --
-----------------------------------------------------------------------------------------------------------------
Operating income -69,624 -70,310 -686 --
-----------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
External customers 2,016,337 1,942,013 -74,324 -3.7
Intersegment -- -- --
Total 2,016,337 1,942,013 -74,324 -3.7
-----------------------------------------------------------------------------------------------------------------
Operating expenses 1,950,340 1,881,817 -68,523 -3.5
-----------------------------------------------------------------------------------------------------------------
Operating income 65,997 60,196 -5,801 -8.8
Operating income on consolidated net sales (%) 3.3 3.1
-----------------------------------------------------------------------------------------------------------------
26
b. Geographic Segment Information
(Three months ended March 31, 2010 and 2011) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2010 March 31, 2011 Change %
-----------------------------------------------------------------------------------------------------------------
JAPAN:
Net sales:
External customers 255,085 230,124 -24,961 -9.8
Intersegment 90,107 83,995 -6,112 -6.8
Total 345,192 314,119 -31,073 -9.0
-----------------------------------------------------------------------------------------------------------------
Operating expenses 333,110 312,899 -20,211 -6.1
-----------------------------------------------------------------------------------------------------------------
Operating income 12,082 1,220 -10,862 -89.9
Operating income on sales in Japan(%) 3.5 0.4
-----------------------------------------------------------------------------------------------------------------
THE AMERICAS:
Net sales:
External customers 141,199 132,496 -8,703 -6.2
Intersegment 638 728 90 14.1
Total 141,837 133,224 -8,613 -6.1
-----------------------------------------------------------------------------------------------------------------
Operating expenses 141,939 133,210 -8,729 -6.1
-----------------------------------------------------------------------------------------------------------------
Operating income -102 14 116 --
Operating income on sales in the Americas(%) -0.1 0.0
-----------------------------------------------------------------------------------------------------------------
EUROPE:
Net sales:
External customers 118,431 112,621 -5,810 -4.9
Intersegment 500 606 106 21.2
Total 118,931 113,227 -5,704 -4.8
-----------------------------------------------------------------------------------------------------------------
Operating expenses 108,543 105,155 -3,388 -3.1
-----------------------------------------------------------------------------------------------------------------
Operating income 10,388 8,072 -2,316 -22.3
Operating income on sales in Europe(%) 8.7 7.1
-----------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
External customers 26,891 27,721 830 3.1
Intersegment 37,591 38,274 683 1.8
Total 64,482 65,995 1,513 2.3
-----------------------------------------------------------------------------------------------------------------
Operating expenses 60,144 63,807 3,663 6.1
-----------------------------------------------------------------------------------------------------------------
Operating income 4,338 2,188 -2,150 -49.6
Operating income on sales in Other(%) 6.7 3.3
-----------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -128,836 -123,603 5,233 --
Total -128,836 -123,603 5,233 --
-----------------------------------------------------------------------------------------------------------------
Operating expenses: -130,395 -118,316 12,079 --
-----------------------------------------------------------------------------------------------------------------
Operating income 1,559 -5,287 -6,846 --
-----------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
External customers 541,606 502,962 -38,644 -7.1
Intersegment -- -- --
Total 541,606 502,962 -38,644 -7.1
-----------------------------------------------------------------------------------------------------------------
Operating expenses 513,341 496,755 -16,586 -3.2
-----------------------------------------------------------------------------------------------------------------
Operating income 28,265 6,207 -22,058 -78.0
Operating income on consolidated net sales(%) 5.2 1.2
-----------------------------------------------------------------------------------------------------------------
27
(Year ended March 31, 2010 and 2011) (Millions of yen)
----------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2010 March 31, 2011 Change %
----------------------------------------------------------------------------------------------------------
JAPAN:
Net sales:
External customers 894,374 890,767 -3,607 -0.4
Intersegment 379,063 395,556 16,493 4.4
Total 1,273,437 1,286,323 12,886 1.0
----------------------------------------------------------------------------------------------------------
Operating expenses 1,240,361 1,256,422 16,061 1.3
----------------------------------------------------------------------------------------------------------
Operating income 33,076 29,901 -3,175 -9.6
Operating income on sales in Japan(%) 2.6 2.3
----------------------------------------------------------------------------------------------------------
THE AMERICAS:
Net sales:
External customers 556,673 521,699 -34,974 -6.3
Intersegment 3,348 3,190 -158 -4.7
Total 560,021 524,889 -35,132 -6.3
----------------------------------------------------------------------------------------------------------
Operating expenses 571,884 528,553 -43,331 -7.6
----------------------------------------------------------------------------------------------------------
Operating income -11,863 -3,664 8,199 --
Operating income on sales in the Americas(%) -2.1 -0.7
----------------------------------------------------------------------------------------------------------
EUROPE:
Net sales:
External customers 460,807 417,291 -43,516 -9.4
Intersegment 2,206 2,381 175 7.9
Total 463,013 419,672 -43,341 -9.4
----------------------------------------------------------------------------------------------------------
Operating expenses 432,822 391,909 -40,913 -9.5
----------------------------------------------------------------------------------------------------------
Operating income 30,191 27,763 -2,428 -8.0
Operating income on sales in Europe(%) 6.5 6.6
----------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
External customers 104,483 112,256 7,773 7.4
Intersegment 141,504 161,150 19,646 13.9
Total 245,987 273,406 27,419 11.1
----------------------------------------------------------------------------------------------------------
Operating expenses 231,646 261,005 29,359 12.7
----------------------------------------------------------------------------------------------------------
Operating income 14,341 12,401 -1,940 -13.5
Operating income on sales in Other(%) 5.8 4.5
----------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -526,121 -562,277 -36,156 --
Total -526,121 -562,277 -36,156 --
----------------------------------------------------------------------------------------------------------
Operating expenses: -526,373 -556,072 -29,699 --
----------------------------------------------------------------------------------------------------------
Operating income 252 -6,205 -6,457 --
----------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
External customers 2,016,337 1,942,013 -74,324 -3.7
Intersegment -- -- --
Total 2,016,337 1,942,013 -74,324 -3.7
----------------------------------------------------------------------------------------------------------
Operating expenses 1,950,340 1,881,817 -68,523 -3.5
----------------------------------------------------------------------------------------------------------
Operating income 65,997 60,196 -5,801 -8.8
Operating income on consolidated net sales(%) 3.3 3.1
----------------------------------------------------------------------------------------------------------
28
B) PER SHARE DATA
(Yen)
-------------------------------------------------------------------------
March 31, 2010 March 31, 2011
-------------------------------------------------------------------------
Shareholders' equity per share 1,341.45 1,281.70
Net income per share-basic 38.41 27.08
Net income per share-diluted 37.36 26.53
A reconciliation of the numerator and the denominators of the basic and diluted
per share computations for income is as follows:
(Millions of yen)
-------------------------------------------------------------------------
March 31, 2010 March 31, 2011
-------------------------------------------------------------------------
Net income 27,873 19,650
Effect of dilutive securities -25 -38
-------------------------------------------------------------------------
Diluted net income 27,848 19,612
-------------------------------------------------------------------------
(Shares)
-------------------------------------------------------------------------
March 31, 2010 March 31, 2011
-------------------------------------------------------------------------
Weight average common shares outstanding 725,613,259 725,554,477
Effect of dilutive securities 19,741,071 13,739,286
-------------------------------------------------------------------------
Diluted common shares outstanding 745,354,330 739,293,763
-------------------------------------------------------------------------
C) SUBSEQUENT EVENTS
Not applicable.
29
-APPENDIX- YEAR ENDED MARCH 31, 2011
1. CONSOLIDATED QUARTERLY PERFORMANCE OUTLINE
(1) Financial Statements Summary (Quarterly) (Billions of yen)
-------------------------------------------------------------------------------------------------------------------------
1Q Change(%) 2Q Change(%) 3Q Change(%) 4Q Change(%)
-------------------------------------------------------------------------------------------------------------------------
Net sales 482.9 -1.7 487.9 -1.9 468.1 -3.7 502.9 -7.1
Gross profit 204.3 2.0 198.6 0.4 196.5 -6.5 190.5 -10.9
Operating income 21.8 259.6 16.1 104.1 15.9 -32.7 6.2 -78.0
Income before income taxes 15.4 353.6 12.5 275.2 13.2 -44.8 4.0 -84.8
Net income 7.3 712.1 5.1 472.3 7.8 -37.9 -0.6 --
-------------------------------------------------------------------------------------------------------------------------
Net income per share (yen) 10.11 -- 7.13 -- 10.79 -- -0.95 --
Net income per share-diluted (yen) 9.83 -- 6.94 -- 10.54 -- -0.95 --
-------------------------------------------------------------------------------------------------------------------------
Total assets 2,361.0 -- 2,343.0 -- 2,191.0 -- 2,262.3 --
Shareholders' investment 925.8 -- 927.8 -- 907.5 -- 929.8 --
-------------------------------------------------------------------------------------------------------------------------
Shareholders' investment per share (yen) 1,276.04 -- 1,278.84 -- 1,250.96 -- 1,281.70 --
-------------------------------------------------------------------------------------------------------------------------
Cash flows from operating activities 41.4 -- 26.0 -- 6.8 -- 55.6 --
Cash flows from investing activities -20.8 -- -28.7 -- -14.5 -- -27.8 --
Cash flows from financing activities 32.4 -- -9.0 -- -115.9 -- 0.5 --
Cash and cash equivalents at end of period 286.2 -- 274.0 -- 147.8 -- 179.1 --
-------------------------------------------------------------------------------------------------------------------------
(2) Capital expenditures and Depreciation (Billions of yen)
------------------------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q
------------------------------------------------------------------------------------------------------------------------
Capital expenditures 15.8 23.7 9.1 18.3
Depreciation for tangible fixed assets 16.0 17.3 16.7 17.0
------------------------------------------------------------------------------------------------------------------------
(3) R&D Expenditures (Billions of yen)
------------------------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q
------------------------------------------------------------------------------------------------------------------------
R&D expenditures 25.6 28.3 27.3 29.5
R&D expenditures / Total Sales (%) 5.3 5.8 5.8 5.9
------------------------------------------------------------------------------------------------------------------------
(4) Interest income (expenses) net (Billions of yen)
------------------------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q
------------------------------------------------------------------------------------------------------------------------
Interest income (expenses) net -1.2 -1.2 -1.1 -1.8
------------------------------------------------------------------------------------------------------------------------
(5) Exchange Rate (Billions of yen)
------------------------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q
------------------------------------------------------------------------------------------------------------------------
Exchange rate (Yen/US$) 92.13 85.95 82.66 82.32
Exchange rate (Yen/EURO) 117.52 110.80 112.30 112.51
------------------------------------------------------------------------------------------------------------------------
A1
2. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Three months ended March 31, 2010 and 2011) (Millions of yen)
------------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended Change excluding
March 31, 2010 March 31, 2011 Change % exchange impact %
------------------------------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 402,911 376,940 -25,971 -6.4 -1,548 -0.4
Percentage of net sales (%) 74.4 74.9
Domestic 149,130 141,003 -8,127 -5.4 -8,127 -5.4
Overseas 253,781 235,937 -17,844 -7.0 6,579 2.6
Network System Solutions 81,242 71,960 -9,282 -11.4 -6,160 -7.6
Percentage of net sales (%) 15.0 14.4
Domestic 55,375 42,292 -13,083 -23.6 -13,083 -23.6
Overseas 25,867 29,668 3,801 14.7 6,923 26.8
Imaging & Solutions Total 484,153 448,900 -35,253 -7.3 -7,708 -1.6
Percentage of net sales (%) 89.4 89.3
Domestic 204,505 183,295 -21,210 -10.4 -21,210 -10.4
Overseas 279,648 265,605 -14,043 -5.0 13,502 4.8
The Americas 138,399 129,594 -8,805 -6.4 4,495 3.2
Europe 112,962 106,673 -6,289 -5.6 6,570 5.8
Other 28,287 29,338 1,051 3.7 2,437 8.6
------------------------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 25,335 24,694 -641 -2.5 148 0.6
Percentage of net sales (%) 4.7 4.9
Domestic 14,553 14,502 -51 -0.4 -51 -0.4
Overseas 10,782 10,192 -590 -5.5 199 1.8
The Americas 2,808 2,858 50 1.8 337 12.0
Europe 3,920 3,485 -435 -11.1 -73 -1.9
Other 4,054 3,849 -205 -5.1 -65 -1.6
------------------------------------------------------------------------------------------------------------------------------
[Other]
Other 32,118 29,368 -2,750 -8.6 -2,640 -8.2
Percentage of net sales (%) 5.9 5.8
Domestic 30,993 28,640 -2,353 -7.6 -2,353 -7.6
Overseas 1,125 728 -397 -35.3 -287 -25.5
The Americas 83 94 11 13.3 18 21.7
Europe 235 247 12 5.1 41 17.4
Other 807 387 -420 -52.0 -346 -42.9
------------------------------------------------------------------------------------------------------------------------------
Grand Total 541,606 502,962 -38,644 -7.1 -10,200 -1.9
Percentage of net sales (%) 100.0 100.0
Domestic 250,051 226,437 -23,614 -9.4 -23,614 -9.4
Percentage of net sales (%) 46.2 45.0
Overseas 291,555 276,525 -15,030 -5.2 13,414 4.6
Percentage of net sales (%) 53.8 55.0
The Americas 141,290 132,546 -8,744 -6.2 4,850 3.4
Percentage of net sales (%) 26.1 26.4
Europe 117,117 110,405 -6,712 -5.7 6,538 5.6
Percentage of net sales (%) 21.6 22.0
Other 33,148 33,574 426 1.3 2,026 6.1
Percentage of net sales (%) 6.1 6.6
------------------------------------------------------------------------------------------------------------------------------
Reference: Exchange rate
US$ 1 Yen 90.76 Yen 82.32 Yen -8.44
EURO 1 Yen 125.64 Yen 112.51 Yen -13.13
Each category includes the following product line:
Imaging Solutions Digital PPCs, color PPCs, digital duplicators,
facsimile machines, analog PPCs, diazo copiers,
scanners, MFPs(multifunctional printers), laser
printers and software
Network System Solutions Personal computers, PC servers, network systems and
network related software
Industrial Products Thermal media, optical equipments, semiconductors,
electronic component and measuring equipments
Other Digital camera, and so on
A2
(Year ended March 31, 2010 and 2011) (Millions of yen)
----------------------------------------------------------------------------------------------------------------------------
Year ended Year ended Change excluding
March 31, 2010 March 31, 2011 Change % exchange impact %
----------------------------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 1,516,172 1,429,824 -86,348 -5.7 12,214 0.8
Percentage of net sales (%) 75.2 73.6
Domestic 530,723 522,828 -7,895 -1.5 -7,895 -1.5
Overseas 985,449 906,996 -78,453 -8.0 20,109 2.0
Network System Solutions 274,071 283,483 9,412 3.4 20,579 7.5
Percentage of net sales (%) 13.6 14.6
Domestic 171,035 169,343 -1,692 -1.0 -1,692 -1.0
Overseas 103,036 114,140 11,104 10.8 22,271 21.6
Imaging & Solutions Total 1,790,243 1,713,307 -76,936 -4.3 32,793 1.8
Percentage of net sales (%) 88.8 88.2
Domestic 701,758 692,171 -9,587 -1.4 -9,587 -1.4
Overseas 1,088,485 1,021,136 -67,349 -6.2 42,380 3.9
The Americas 544,206 509,904 -34,302 -6.3 8,809 1.6
Europe 441,649 399,382 -42,267 -9.6 19,746 4.5
Other 102,630 111,850 9,220 9.0 13,825 13.5
----------------------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 101,692 106,830 5,138 5.1 8,562 8.4
Percentage of net sales (%) 5.0 5.5
Domestic 56,145 65,428 9,283 16.5 9,283 16.5
Overseas 45,547 41,402 -4,145 -9.1 -721 -1.6
The Americas 12,860 11,665 -1,195 -9.3 -237 -1.8
Europe 15,322 13,535 -1,787 -11.7 73 0.5
Other 17,365 16,202 -1,163 -6.7 -557 -3.2
----------------------------------------------------------------------------------------------------------------------------
[Other]
Other 124,402 121,876 -2,526 -2.0 -2,184 -1.8
Percentage of net sales (%) 6.2 6.3
Domestic 118,675 118,260 -415 -0.3 -415 -0.3
Overseas 5,727 3,616 -2,111 -36.9 -1,769 -30.9
The Americas 621 401 -220 -35.4 -210 -33.8
Europe 1,613 1,019 -594 -36.8 -442 -27.4
Other 3,493 2,196 -1,297 -37.1 -1,117 -32.0
----------------------------------------------------------------------------------------------------------------------------
Grand Total 2,016,337 1,942,013 -74,324 -3.7 39,171 1.9
Percentage of net sales (%) 100.0 100.0
Domestic 876,578 875,859 -719 -0.1 -719 -0.1
Percentage of net sales (%) 43.5 45.1
Overseas 1,139,759 1,066,154 -73,605 -6.5 39,890 3.5
Percentage of net sales (%) 56.5 54.9
The Americas 557,687 521,970 -35,717 -6.4 8,362 1.5
Percentage of net sales (%) 27.7 26.9
Europe 458,584 413,936 -44,648 -9.7 19,377 4.2
Percentage of net sales (%) 22.7 21.3
Other 123,488 130,248 6,760 5.5 12,151 9.8
Percentage of net sales (%) 6.1 6.7
----------------------------------------------------------------------------------------------------------------------------
Reference: Exchange rate
US$ 1 Yen 92.91 Yen 85.77 Yen -7.14
EURO 1 Yen 131.21 Yen 113.28 Yen -17.93
Each category includes the following product line:
Imaging Solutions Digital PPCs, color PPCs, digital duplicators,
facsimile machines, analog PPCs, diazo copiers,
scanners, MFPs(multifunctional printers), laser
printers and software
Network System Solutions Personal computers, PC servers, network systems and
network related software
Industrial Products Thermal media, optical equipments, semiconductors,
electronic component and measuring equipments
Other Digital camera, and so on
A3
3. FORECAST OF CONSOLIDATED SALES BY PRODUCT CATEGORY
(Billions of yen)
--------------------------------------------------------------------------------------------------------------
Year ending March 31, 2012
--------------------------
Year ended Change Change
March 31, 2011 Forecast % Forecast(*) %
--------------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 1,429.8 1,537.5 7.5 1,518.6 6.2
Domestic 522.8 538.7 3.0 538.7 3.0
Overseas 906.9 998.8 10.1 979.9 8.0
Network System Solutions 283.4 323.8 14.2 322.0 13.6
Domestic 169.3 182.6 7.8 182.6 7.8
Overseas 114.1 141.2 23.7 139.4 22.1
Imaging & Solutions Total 1,713.3 1,861.3 8.6 1,840.6 7.4
Domestic 692.1 721.3 4.2 721.3 4.2
Overseas 1,021.1 1,140.0 11.6 1,119.3 9.6
The Americas 509.9 550.2 7.9 554.4 8.7
Europe 399.3 457.1 14.5 431.4 8.0
Other 111.8 132.7 18.6 133.5 19.4
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[Industrial Products]
Industrial Products 106.8 108.1 1.2 107.3 0.4
Domestic 65.4 61.7 -5.7 61.7 -5.7
Overseas 41.4 46.4 12.0 45.6 10.0
The Americas 11.6 13.5 15.7 13.6 16.2
Europe 13.5 15.7 16.0 14.8 9.5
Other 16.2 17.2 6.0 17.2 6.0
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[Other]
Other 121.8 120.6 -1.0 120.8 -0.9
Domestic 118.2 117.0 -1.1 117.0 -1.1
Overseas 3.6 3.6 -0.2 3.8 4.8
The Americas 0.4 0.4 -0.2 0.4 5.0
Europe 1.0 1.0 -1.9 1.0 1.8
Other 2.1 2.2 0.6 2.3 6.1
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Grand Total 1,942.0 2,090.0 7.6 2,068.7 6.5
Domestic 875.8 900.0 2.8 900.0 2.8
Overseas 1,066.1 1,190.0 11.6 1,168.7 9.6
The Americas 521.9 564.1 8.1 568.4 8.9
Europe 413.9 473.8 14.5 447.3 8.1
Other 130.2 152.1 16.8 153.0 17.5
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* Excluding foreign exchange impact
Reference: Year ended March 31, 2011 Year ending March 31, 2012
Exchange rate (Results) (Forecast)
US$ 1 Yen 85.77 Yen 85.00
EURO 1 Yen 113.28 Yen 120.00
Each category includes the following product line:
Imaging Solutions Digital PPCs, color PPCs, digital duplicators,
facsimile machines, analog PPCs, diazo copiers,
scanners, MFPs(multifunctional printers), laser
printers and software
Network System Solutions Personal computers, PC servers, network systems and
network related software
Industrial Products Thermal media, optical equipments, semiconductors,
electronic component and measuring equipments
Other Digital camera and so on
A4
-APPENDIX B-
[SCHEDULE 1] CONSOLIDATED SALES BY PRODUCT LINE
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Year ended Year ended Year ended
March 31, 2009 March 31, 2010 March 31, 2011
------------------------------------------------------------------------------------------------
Imaging Solution Business 1,598.6 1,516.1 1,429.8
Network System Solution Business 234.4 274.0 283.4
Industry Business 115.5 101.6 106.8
Other Business 143.0 124.4 121.8
------------------------------------------------------------------------------------------------
Imaging Solution Business (%) 76.4 75.2 73.6
Network System Solution Business (%) 11.2 13.6 14.6
Industry Business (%) 5.5 5.0 5.5
Other Business (%) 6.9 6.2 6.3
100.0 100.0 100.0
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[SCHEDULE 2] CONSOLIDATED SALES BY GEOGRAPHIC AREA
------------------------------------------------------------------------------------------------
Year ended Year ended Year ended
March 31, 2009 March 31, 2010 March 31, 2011
------------------------------------------------------------------------------------------------
Japan 938.3 876.5 875.8
The Americas 502.8 557.6 521.9
Europe 523.4 458.5 413.9
Others 127.0 123.4 130.2
------------------------------------------------------------------------------------------------
Japan (%) 44.9 43.5 45.1
The Americas (%) 24.0 27.7 26.9
Europe (%) 25.0 22.7 21.3
Others (%) 6.1 6.1 6.7
Total 100.0 100.0 100.0
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[SCHEDULE 3] GEOGRAPHIC SEGMENT INFORMATION
------------------------------------------------------------------------------------------------
Year ended Year ended Year ended
Japan March 31, 2009 March 31, 2010 March 31, 2011
------------------------------------------------------------------------------------------------
Net sales (Billions of yen) 1,393.1 1,273.4 1,286.3
Operating income (Billions of yen) 61.5 33.0 29.9
Operating income on net sales (%) 4.4 2.6 2.3
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Year ended Year ended Year ended
The Americas March 31, 2009 March 31, 2010 March 31, 2011
------------------------------------------------------------------------------------------------
Net sales (Billions of yen) 506.7 560.0 524.8
Operating income (Billions of yen) -25.9 -11.8 -3.6
Operating income on net sales (%) -5.1 -2.1 -0.7
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Year ended Year ended Year ended
Europe March 31, 2009 March 31, 2010 March 31, 2011
------------------------------------------------------------------------------------------------
Net sales (Billions of yen) 523.5 463.0 419.6
Operating income (Billions of yen) 19.4 30.1 27.7
Operating income on net sales (%) 3.7 6.5 6.6
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Year ended Year ended Year ended
Others March 31, 2009 March 31, 2010 March 31, 2011
------------------------------------------------------------------------------------------------
Net sales 265.6 245.9 273.4
Operating income 12.6 14.3 12.4
Operating income on net sales 4.7 5.8 4.5
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B1